CELESTICA INC (CLS) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock

332.895 USD

+24.64 (+8%)

Last: 1/27/2026, 1:37:23 PM

Fundamental Rating

Overall CLS gets a fundamental rating of 7 out of 10. We evaluated CLS against 123 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CLS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make CLS a good candidate for growth and quality investing.

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1. Profitability

1.1 Basic Checks

In the past year CLS was profitable.
CLS had a positive operating cash flow in the past year.
CLS had positive earnings in each of the past 5 years.
CLS had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

CLS has a Return On Assets of 10.85%. This is amongst the best in the industry. CLS outperforms 91.87% of its industry peers.
Looking at the Return On Equity, with a value of 35.33%, CLS belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.33%, CLS belongs to the top of the industry, outperforming 96.75% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is above the industry average of 8.87%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	10.85%
ROE	35.33%
ROIC	21.33%

ROA(3y)4.63%

ROA(5y)3.55%

ROE(3y)15.02%

ROE(5y)11.3%

ROIC(3y)11.43%

ROIC(5y)8.93%

1.3 Margins

The Profit Margin of CLS (6.35%) is better than 72.36% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 7.33%, CLS is doing good in the industry, outperforming 71.54% of the companies in the same industry.
In the last couple of years the Operating Margin of CLS has grown nicely.
The Gross Margin of CLS (12.04%) is worse than 76.42% of its industry peers.
CLS's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	7.33%
PM (TTM)	6.35%
GM	12.04%

OM growth 3Y24.27%

OM growth 5Y29.03%

PM growth 3Y34%

PM growth 5Y30.13%

GM growth 3Y8.03%

GM growth 5Y10.39%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CLS has been reduced compared to 1 year ago.
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
CLS has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 7.10 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS's Altman-Z score of 7.10 is amongst the best of the industry. CLS outperforms 81.30% of its industry peers.
CLS has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
The Debt to FCF ratio of CLS (1.97) is better than 78.05% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CLS (0.37) is worse than 60.16% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

		Industry Rank	Sector Rank
Debt/Equity	0.37
Debt/FCF	1.97
Altman-Z	7.1

ROIC/WACC2.67

WACC7.98%

2.3 Liquidity

CLS has a Current Ratio of 1.47. This is a normal value and indicates that CLS is financially healthy and should not expect problems in meeting its short term obligations.
CLS has a Current ratio of 1.47. This is in the lower half of the industry: CLS underperforms 75.61% of its industry peers.
A Quick Ratio of 0.88 indicates that CLS may have some problems paying its short term obligations.
The Quick ratio of CLS (0.88) is worse than 85.37% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

		Industry Rank	Sector Rank
Current Ratio	1.47
Quick Ratio	0.88

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
Measured over the past years, CLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.11% on average per year.
CLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.09%.
Measured over the past years, CLS shows a quite strong growth in Revenue. The Revenue has been growing by 10.38% on average per year.

EPS 1Y (TTM)47.9%

EPS 3Y44.1%

EPS 5Y48.11%

EPS Q2Q%51.92%

Revenue 1Y (TTM)22.09%

Revenue growth 3Y19.63%

Revenue growth 5Y10.38%

Sales Q2Q%27.79%

3.2 Future

Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 38.14% on average per year.
The Revenue is expected to grow by 27.74% on average over the next years. This is a very strong growth

EPS Next Y53.05%

EPS Next 2Y46.37%

EPS Next 3Y43.28%

EPS Next 5Y38.14%

Revenue Next Year26.52%

Revenue Next 2Y29.69%

Revenue Next 3Y30.76%

Revenue Next 5Y27.74%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CLS is valuated quite expensively with a Price/Earnings ratio of 63.05.
CLS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.25. CLS is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 39.64 indicates a quite expensive valuation of CLS.
CLS's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CLS to the average of the S&P500 Index (25.98), we can say CLS is valued expensively.

		Industry Rank	Sector Rank
PE	63.05
Fwd PE	39.64

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS is on the same level as its industry peers.
CLS's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	96.17
EV/EBITDA	36.32

4.3 Compensation for Growth

CLS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 43.27% in the coming years.